Bahrain: IMF Warns On ‘Fiscal Imbalances’

The IMF says Bahrain’s “most immediate policy challenges are to correct the fiscal imbalances and stabilize government debt, while balancing growth and debt sustainability considerations. [...] Over the longer term, the challenge is to reduce fiscal dependence on oil revenues and resume robust economic growth.” GDP grew at 5.3% in 2013, supported by a rebound in the hydrocarbons sector (which also rose by 5.3%).

Most of the oil and gas sector boost came from the Abu Sa’fa field, which is shared 50:50 with Saudi Arabia. Production increased by more than 17% between 2012 and 2013, with Bahrain netting about 150,000 b/d last year. Gas production also increased considerably last year, from about 590mn cfd in 2012 to nearly 680mn cfd in 2013. (CONTINUED - 324 WORDS)